Steps taken by RBI to safegaurd E-wallet users



According to the Internet and Mobile Association of India (IAMAI), the number of internet users were expected to reach 500 million by the end of 2018. Increasing access to internet and net neutrality has made e-wallets an easy access to consumers. But with every advantage comes a responsibility to secure the interest of the user. RBI has made certain guidelines that protect the consumer.
The RBI decided to keep a cap on customer liability for frauds. In case of unauthorised transactions, the consumer will not incur any liability which occurs as a result of company’s negligence or deficiency. The central bank safeguards the customer even if the fraud can be traced to the consumer’s negligence, provided they take timely action.
  • Onus of the proof to lie with the issuer: The most bothering feature of e-wallets is the loss of monetary fund due to fraudulent transactions without any compensation promised. To eliminate this hesitation, RBI has shifted the burden of consumer liability to prepaid instrument holders.
  • Reversal of deductions: The reporting of a suspicious transaction would liable the company to credit the customer’s account within ten days. So not only are the deductions reversed but also time bound in nature.
  • Registration for transaction alerts is compulsory: The RBI has also directed the prepaid customers to sign up for SMS alerts so that in case of any electronic payment, real time transaction details can be sent to the consumer. It is a very useful guideline and is advised to be registered using authentic details.
  • Easy reporting of transactions: The major fallout from customers is due to the long and tiring reporting procedures that are time and energy consuming. Easy reporting has helped the customers to report fraudulent transactions immediately. Alerts should not be ignored and it is also the responsibility of the customer s to take a stand and protect their interest as a whole.
Thank You
Regards
Author- Kaushal Shah
Kautilya 
IBS Mumbai

Comments